Light, sweet crude oil for April delivery declined slightly but settled above $59/bbl on Mar. 19 for a second consecutive day. Some suggested market participants awaited the weekly US oil and products inventory to be released on Mar. 20.
US crude oil prices reached the highest settlement of 2019 so far on Mar. 18 when the May contract closed at $59.38/bbl on the New York market. Brent for May delivery closed in London Mar. 18 at $67.54/bbl, just under its 2019 highest settlement of $67.55/bbl, set on Mar. 13.
“Prices are pausing for now, shy of psychological levels: $60 for West Texas Intermediate, $70 for Brent,” Matt Smith, ClipperData director of commodity research, told UPI.
Morgan Stanley analysts said Brent prices could rally to $75/bbl by the third quarter. They cited downside risk in Iran, Venezuela, and other members of the Organization of Petroleum Exporting Countries.
In a research note, Morgan Stanley said it estimates the oil market is undersupplied by 500,000 b/d in the second quarter, increasing to 800,000 b/d by the third quarter.
Energy prices
The April contract for light, sweet crude oil on the New York Mercantile Exchange decreased 6¢ to settle at $59.03/bbl on Mar. 19. The contract for May delivery fell 9¢ to settle at $59.29/bbl.
NYMEX natural gas for April gained 2¢ to settle at $2.87/MMbtu.
Ultralow-sulfur diesel for April gained 2¢ to $1.99/gal. The NYMEX reformulated gasoline blendstock for April gained 1¢ to $1.89/gal.
Brent crude for May delivery increased 7¢ to $67.61/bbl while the June contract increased 6¢ to settle at $67.42/bbl.
The gas oil contract for April rose $4.25 to $609.25/tonne on Mar. 19.
The average price for OPEC’s basket of crudes was $67.25/bbl on Mar. 19, up 38¢.
Contact Paula Dittrick at [email protected].
